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Why more than 1% inflation to the EOS Foundation is better

The recent proposal by Yves to establish an EOS foundation suggests adding 1% of inflation to EOS (total inflation : 2%) in order to direct 1% out of the 2% to fund the EOS Foundation activities.

At the current average token price over the last 12 months, which is around 4 USD, the inflation from 1% is 38 mil$.
This is quite a good amount, since it allows the EOS Foundation to hire developers and kick start development, research, UX fixing, and marketing activities.

Why inflation rate doesn’t really matter to price

EOS’s inflation rate is 1%
Ethereum’s inflation rate is about 4%.
Polkadot’s inflation rate is about 10%
Both projects have surpassed EOS’s price performance by orders of magnitude during the last year.
Vitalik Buterin several times had complained, that the amount paid to miner security in the ethereum network is much more than the relatively miniscule amount paid to fund R&D efforts for the ethereum stack and that it seems absurd to him. What is more important? security or advancing the technology and making it more accessible?
Vitalik Buterin is not satisfied with Ethereum’s current spending rate. He wishes to spend more and to increase the R&D efforts, but unfortunately he didn’t get the social acceptance to do that.
Just having an additional 1% to the inflation rate can bring EOS’s spending and development efforts to the levels of mega projects that parallel ethereum and cardano.
What seems to be important is the futuristic inflation rate. We are selling the dream, the fantasy. Not what is helping us to get going right now. If EOS would be worth hundreds of dollars, then 0.25% inflation rate would clearly be enough for the EOS foundation and/or Eden. But not right now. Now is the time to act.
What seems to be important is not the current inflation rate, but that we can build a good community, a good tech, a positive community that attracts many others to our community. This can be achieved by improving and building, by innovating, by marketing, by giving grants and rewarding people who helped but received nothing in return, and by investing in other projects. But all of those activities require funds.

What is possible with large funding

By having at least 25 mil $ it can bring the R&D efforts to the levels that parallel ethereum’s (as it was in 2018-2019). This allows much needed infrastructure development for EOS, tools, utilities, UX changes, wallet development, services and APIs, and funding grants.
However, by having more money, some money can be dedicated to marketing efforts. Marketing can change the negative image of EOS and reverse the bearish trend EOS is having. By reversing the bear trend the proportional funding from inflation can even increase further along with the price.

What is possible with larger funding

By having even more funding (such as 2% inflation rate dedicated to the EOS foundation), an investment fund can be established, to give funding to good projects and companies with an agreement that the project will only use the EOS blockchain.
For an example, Terra Luna has a 150 mil $ investment fund that does just that.

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Some calculations and parallels - Ethereum foundation spending:

Take a look at the Ethereum foundation spending from 2015:
this is around 2 mil $ per year, but ethereum was small back then.
As of august 2018 Ethereum foundation employed 90 people, source :
90 full time developers cost 150k USD per year i.e. 13.5 mil $
it is more likely that, today, Ethereum team size grew and they employ more people now.
To date, grants by the ethereum foundation reached 25 mil $ (spread over 5 years), which is 25/5=5 mil $ per year.
so 13.5+5=18.5 mil $ per year spending if we were to be equivalent to the ethereum foundation.

Cardano spending:

According to this source (3 years ago) cardano spends 12 mil $ per year

Uniswap investent fund

Uniswap has 100 mil $ just to fund projects

Terra Luna defi investment fund

Terra Luna has 150 mil $ investment fund just to find projects that are good for Terra Luna

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source for cardano’s 12 mil yearly spending:Surprise AMA with Charles Hoskinson 08/10/2018 - YouTube
source for ethereum’s team size:Ethereum Foundation - EthHub

“What seems to be important is the futuristic inflation rate. We are selling the dream, the fantasy. Not what is helping us to get going right now. If EOS would be worth hundreds of dollars, then 0.25% inflation rate would clearly be enough for the EOS foundation and/or Eden. But not right now. Now is the time to act.”

So you agree less inflation is needed as EOS price goes up. This is why it’s important to set parameters up now by determining specific price levels where inflation would increase or decrease as outlined in EOS Detroit proposal. It will be extremely difficult trying to change inflation rate later if it actually gets approved. There is no harm in having predetermined EOS price levels where inflation decreases with price appreciation.

At the end of the day 15/21 BPs need to approve. I believe setting up a sliding price/inflation scale now gives it the best chance for BP approval and gives certainty for potential EOS investors in the future.

I said my peace… we both want what’s best for EOS


Yes, but changing the inflation rate is one msig away.
If in two years time the funds keep accumulating on eos.savings because the basic needs are already covered, we can just propose a smaller amount, like it was done in the past

Basically, I don’t think deciding that should slow anything down


要知道其他公链基金会的钱是哪里出?不是通胀出的,以太坊再通缩,而你EOS再通胀,其他公链都是创始人和项目方出钱成立基金会,而你柚子却想着通胀成立基金会,柚子最后的共识都得让这些人玩烂!!!Want to know other public chain foundation money is where? Not from inflation, ethereum is deflationary, and you EOS is re-inflationary, other public chains are the founders and project parties to fund the foundation, but you yuelo is thinking of inflation to set up the foundation, yuelo’s final consensus must let these people play!!

Most public network get the fund from “inflation” some of them in every block reward and others by pre mining some of it at the start.
Where do you think the Ethereum Foundation money came from?
Ethereum has four times the inflation (4%) of EOS (1%) right now.

EOS is an utility token, we need to add usefulness, not trying to control the supply

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